Prime Minister Narendra Modi declared a significant policy shift on Thursday, revealing that India is preparing to open its nuclear energy sector to private sector investments, following the successful model implemented in the space industry.
Historic Reforms in Nuclear Energy
While inaugurating Skyroot's Infinity Campus in Hyderabad via video conference, the Prime Minister emphasized that the scope of reforms is continuously expanding across sectors. "Just as space innovation was opened to the private sector, India is now moving towards opening the nuclear sector as well," Modi stated during his virtual address.
The Prime Minister elaborated that a strong role for the private sector is being established in this field, which will generate significant opportunities in developing small modular reactors, advanced reactors, and nuclear innovation projects. He emphasized that this transformative reform will provide new strength to India's energy security and enhance the country's technological leadership position globally.
Legislative Changes Ahead
The timing of Modi's announcement is particularly significant as it comes just ahead of Parliament's winter session, scheduled to begin from December 1. The Lok Sabha bulletin for the upcoming session includes the Atomic Energy Bill, 2025, which proposes to open up the civil nuclear sector to private players.
Additionally, amendments to another crucial nuclear legislation - the Civil Liability for Nuclear Damage Act (CLNDA) of 2010 - are also under consideration. If successfully passed, these legislative changes will usher in comprehensive reforms in the nuclear sector, coming at a critical juncture when India has established an ambitious target of generating at least 100 GW of nuclear energy by 2047.
Current Regulatory Framework and Future Vision
Presently, the Atomic Energy Act strictly prohibits participation from either the private sector or state governments in nuclear power operations. Under existing regulations, the authority to operate nuclear power plants is exclusively vested with the central government and corporations established by it.
The Nuclear Power Corporation of India Limited (NPCIL), a public sector undertaking under the Department of Atomic Energy, remains the sole entity operating nuclear power facilities in the country. NPCIL currently manages all 24 commercial nuclear reactors across India.
Beyond nuclear energy reforms, Prime Minister Modi also highlighted the government's focus on research and innovation. He stressed that the future will depend significantly on research being conducted today, and the administration is committed to providing maximum opportunities for youth in research domains.
Modi underlined that the Rs 1 lakh crore Research, Development, and Innovation Fund will offer substantial support to young researchers and innovators. The Prime Minister also revealed that more than 10,000 Atal Tinkering Labs have already been established to foster research and innovation spirit among students, with plans underway to set up 50,000 new labs in the coming days.
